Jeremy Hunt Will Not Be Referred To Cabinet Secretary Over 'Ministerial Code Breaches'

Hunt Will Not Be Referred Over 'Ministerial Code Breaches'
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Jeremy Hunt held on to his place in the Cabinet today, after Prime Minister David Cameron decided not to order an investigation into whether he breached the ministerial code of conduct in his handling of the News Corporation bid for BSkyB.

After watching the Culture Secretary give evidence to the Leveson Inquiry, Cameron judged that he had acted "properly" throughout the period when he was responsible for the bid, said Downing Street.

Labour deputy leader Harriet Harman said it was "frankly disgraceful" that Hunt was not being referred to the PM's independent adviser on the code Sir Alex Allan.

Downing Street sources said the top civil servant at the Department for Culture, Media and Sport, permanent secretary Jonathan Stephens, had made clear to Lord Justice Leveson that Hunt had given himself very little room for political manoeuvre by referring the BSkyB bid to independent regulators.

In taking the regulators' advice throughout the process, he took a series of decisions which were contrary to News Corp's interests.

But Harman said Hunt was "clearly already biased" when he was handed quasi-judicial responsibility for overseeing the BSkyB bid in December 2010.

Hunt had misled Parliament about his communications with News Corp and he did not obey the legal advice he was given about intervening, said Ms Harman.

She said this meant there was "no doubt" he had broken the ministerial code.

"He broke the ministerial code, he misled Parliament, and yet David Cameron is keeping him in his Cabinet. It's absolutely disgraceful.

"All of those things mean he should not be carrying on in his job."

At the end of a six-hour grilling on his role in the takeover decision, Hunt insisted there was no reason for him to quit - though he said he had considered resigning.

"I did think about my own position," he said.

"But I had conducted the bid scrupulously fairly throughout every stage and I believed it was possible to demonstrate that and I decided it wasn't appropriate for me to go."

Hunt did accept however, that chatty messages he exchanged with James Murdoch while he was responsible for deciding on the BSkyB issue were, with hindsight inappropriate.

Among messages between the pair was one congratulating the media executive on a promotion to a new News Corp job in New York, in which Hunt joked: "I am sure you will really miss Ofcom in NY!"

"Sadly I fear they won't see the back of me that easily! Hopefully we can move our other business forward soon," Murdoch replied in an apparent reference to the takeover bid.

Hunt insisted that such messages "had absolutely no impact on the process" and were "just me being courteous" but added that he would avoid such contact in similar circumstances in the future.

"I think probably now I would not take the same view and would avoid all text messages," he said.

Fresh evidence also emerged of Hunt's personal involvement in the BSkyB issue shortly before he was handed quasi-judicial responsibility for it.

Text messages handed over to the inquiry showed he texted Chancellor George Osborne to express fears the Government was going to "screw up" the deal.

He contacted Osborne after receiving a phone call from James Murdoch questioning the legitimacy of the process when secret recordings of Business Secretary Vince Cable "declaring war" on News Corporation emerged.

Timed at 4.08pm, Hunt's message to Osborne read: "Could we chat about Murdoch Sky bid? I am seriously worried we are going to screw this up. Jeremy."

He immediately sent a second, saying: "Just been called by James M. His lawyers are meeting now and saying it calls into question legitimacy of whole process from beginning. 'acute bias' etc."

A couple of minutes later, Hunt sent an email to Andy Coulson, the former News of the World editor at that time working as Prime Minister David Cameron's director of communications.

"Could we chat about this?", he wrote.

"I am seriously worried Vince Cable will do real damage to coalition with his comments."

At 4.58pm, with the formal appointment of Hunt to take over examination of the takeover bid to be announced within the hour, the Chancellor replied by text to Hunt: "I hope you like the solution."

It also emerged Hunt sent a "great news" message to James Murdoch on the same day after the European Commission said the bid had cleared legal hurdles in Europe - adding "just Ofcom to go".

In a staunch defence of his ability to "set aside any views you have" in taking the quasi-judicial decisions - and insisted his actions backed that up.

"My suitability for the role is demonstrated by the actions I took when I did take responsibility for the role because I believe I did totally set aside all those sympathies."

He went as far as to "set up a process explicitly to make sure" that happened, he added.

Hunt lavished praise on his former special adviser Adam Smith, who he had told to quit following disclosures of his close contacts with News Corp lobbyist Fred Michel during the bid process, describing him as highly intelligent and able.

He suggested his aide may have "slipped into inappropriate language" because of the sheer volume of communications he was getting from Michel as he sought to get him "off his back".

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The Culture Secretary leaves the Leveson Inquiry on Thursday

A Downing Street spokesman said: "Jeremy Hunt's evidence has shown that he acted properly while he was responsible for the BSkyB bid. He took independent advice at every turn, as well as a number of decisions which were against News Corporation's wishes.

"As the Permanent Secretary of the department made clear, Jeremy Hunt set up a process which left him with a 'vanishingly small' chance to 'manipulate' the bid for 'political or other ends'.

"There are some lessons to be learned from this process and that's why the Cabinet Secretary has already written to all departments regarding the way quasi-judicial decisions are taken.

"The Prime Minister will not be referring Jeremy Hunt to Sir Alex Allan."

Labour will ensure that question marks over Mr Hunt's position are raised in Parliament after the House of Commons returns from its recess break on 11 June, said a party source.

Thursday's evidence has reinforced Labour's belief that the Culture Secretary should never have been given quasi-judicial oversight of the BSkyB bid in the first place and should not hold on to his job now.

The source also questioned why Osborne had become involved in the BSkyB issue on the day when Cable was stripped of responsibility.

"Why should the Chancellor of the Exchequer be involved in something which is a quasi-judicial role for a media merger?" asked the Labour source. "It is nothing to do with Treasury policy.

"That can only be because it is clearly a very, very high-level political decision. George Osborne wasn't doing it with his Treasury hat on, he was doing it with his Conservative campaign chief hat on."

Harman accused the Prime Minister of trying to sweep the issue of Mr Hunt's behaviour "under the carpet".

"Jeremy Hunt should never have been given the quasi-judicial role in the first place as he was biased in favour of the bid," she said. "David Cameron knew this to be the case because of the memo Hunt had sent him where he had expressed clear support for the bid.

"Jeremy Hunt should not be in his job now, as he has broken the ministerial code and misled Parliament. At the very least, David Cameron should refer him to the independent adviser on ministerial interests.

"David Cameron said he would stand up for high standards but he is sweeping this matter under the carpet."